The Week in Alternative Fuels
Here are some key developments in alternative bunker fuels from the past week.
PHOTO: Concept design of Battolyser systems factory at the Port of Rotterdam. Kraaijvanger Architects
Countries are beginning to embrace hydrogen, a simple molecule that has been dubbed the "fuel of the future". Several projects to ramp up hydrogen production have either been either implemented or come into the pipeline, particularly in Europe.
The Port of Rotterdam is exploring green hydrogen production from a a new type of electrolyser known as a “Battolyser”. A Battolyser can supposedly make it possible for a battery to function like an electrolyser, it would store and supply electricity and be able to act as an electrolyser when fully charged.
Ship engine manufacturers are also seeking to develop various new hydrogen or hydrogen derivative technologies for ships. This week, marine engine maker Wartsila and Finnish clean hydrogen producer Hycamite TCD Technologies agreed to develop onboard systems to produce hydrogen. They aim to develop a system that will allow ships to produce hydrogen from LNG stored onboard. The hydrogen produced using this technology will be later blended with LNG and could enable ships to reduce some emissions.
This year, new orders for methanol-powered vessel orders has skyrocketed. The majority of these orders have been for container ships. Danish shipping company Terntank has placed orders for four-methanol powered dual-fuelled tankers, which will be also equipped with wind-assisted propulsion systems to reduce their energy consumption.
Plans to lay the groundwork for future shipping fuels are being prepared in several global ports. The UN Conference on Trade and Development (UNCTAD) has advocated for increased investments in port infrastructure development and newbuild ship orders. But it simultaneously warned that the current global economic slowdown poses a threat to these developments.
A report published by Marine Capital, UMAS and Lloyd’s Register estimates that the UK’s shipping sector requires an investment of £75 billion ($91 billion) over the course of the next three decades in order to achieve the country's net-zero target for all sectors.
Also this week, classification society Nippon Kaiji Kyokai (ClassNK) approved an ammonia-fuelled bulk carrier design by Japanese shipping firm Kawasaki Kisen Kaisha’s (K Line). Several Japanese shipping companies have poured investments into zero-emission vessels. K Line aims to have zero-emission vessels in operation by the end of the decade.
By Nithin Chandran
Here is our selection of five top alternative fuels stories from this week:
Port of Rotterdam looks to scale green hydrogen production with novel 'Battolyser' concept
Port of Rotterdam has partnered with Dutch company Battolyser Systems to install a "Battolyser" plant capable of producing 1 gigawatt/year of green hydrogen.
In May this year, the Rotterdam Port Authority announced plans to supply 4.6 million mt/year of hydrogen to Europe by 2030, through a combination of local production and imports.
“Companies in the port are already actively working on projects regarding production, imports, shipping, storage, and use of green hydrogen. With this factory, we add green hydrogen equipment manufacturing to that portfolio,” says Allard Castelein, chief executive of the Port of Rotterdam.
The "Battolyser" is a novel concept developed by Fokko Mulder, a professor at Delft University of Technology, where a battery is integrated with an electrolyser. As a battery, it stores and supplies electricity, and when fully charged, it functions as an electrolyser.
According to Battolyser Systems, its biggest advantage is the ability to produce hydrogen continuously, giving it an edge over electrolysers powered by intermittent renewable electricity sources like wind and solar power. Due to its built-in battery, it can cope well with fluctuations in renewable electricity, its developers argue.
“Since the Battolyser can work with an irregular supply of energy, it is an ideal system to produce truly green hydrogen," says Kees Koolen, chief executive of Koolen Industries, which has invested in the Battolyser.
A report by the International Energy Agency (IEA) notes that higher efficiencies, improved degradation resistance and reduced material requirements will “significantly decrease both the cost of manufacturing electrolysers and the cost of producing hydrogen.”
Battolyser Systems claims that its unit ticks all the boxes listed in the IEA's prediction and produces clean hydrogen at a low price.
S&P Global Commodity Insights has reported that the price of electrolytic green hydrogen spiked to $16.80/kg ($16,800/mt) in late July. However, the IEA predicts green hydrogen will come down drastically by the end of the decade, and cost between $1.3-4.5/kg ($1,300-4,500/mt) then, partly as a result of the advancements in electrolyser technology.
Wartsila to develop technology for hydrogen production onboard vessels
Marine engine maker Wartsila and Finnish clean hydrogen producer Hycamite TCD Technologies have agreed to develop an onboard system to produce hydrogen from LNG.
The concept design is expected to be ready by mid-2023, and the prototype testing unit will be completed by the second half of 2024.
The system will allow ships to produce hydrogen from LNG onboard. The hydrogen output will then be blended with LNG to help ships reduce their emissions. The by-product from the process is solid carbon that can be stored on board, Wartsila says.
According to Wartsila, the technology can be applied to all LNG-powered vessels, adding that it enables even carbon-neutral power generation on board ships when using bio-LNG.
“This solution overcomes the lack of an existing hydrogen supply infrastructure. It also supports reducing the safety risks around storing and handling liquid hydrogen and enables a gradual decrease of the vessels’ environmental impact,” says Mathias Jansson, Wartsila’s director-fuel gas supply systems.
The collaboration will make hydrogen storage and availability a realistic option for the marine industry, says Hycamite founder and chief executive Laura Rahikka.
Terntank orders four methanol-ready tankers with wind-assisted propulsion
Danish shipping company Terntank has ordered four dual fuel tankers that can run on methanol slated for delivery by 2025.
The 15,000 dwt tankers have been designed by Norwegian technology company Kongsberg and will be built at China Merchants Jinling Shipyard, Yangzhou.
The company claims that these vessels will reduce carbon dioxide emissions by 40% compared to conventional marine fuels, with wind-assisted propulsion shaving off an extra 8% of emissions.
Several shipping companies have been looking to utilise or switch to alternative fuels and innovative technologies to reduce emissions.
Among recent developments, last month, US-based Disney Cruise Line acquired a partially constructed cruise ship that can run on green methanol for operations outside the US. Also in last month, UK-based marine engineering consultancy BAR Technologies and Norwegian marine technology firm Yara Marine revealed that they have developed a wind-assisted propulsion system that will now be retrofitted on several vessels.
UNCTAD calls for more investment in global maritime infrastructure
The UN Conference on Trade and Development (UNCTAD) says that greater investments are needed to prepare ports and the global shipping fleet for future climate challenges and the energy transition.
UNCTAD's "Review of Maritime Transport 2022" highlights that total carbon emissions from global shipping fleet increased by 4.7% between 2020 and 2021, with container ships, dry bulk and general cargo vessels accounting for most of it.
The agency has called for more investments in technical and operational measures such as uptake of low or zero-carbon fuels, use of on-shore electricity and retrofits of energy-saving vessel technologies to reduce emissions.
Meanwhile, it cautions that investments in newbuilds could be hampered a weak global economic outlook and regulatory uncertainties.
It says that global maritime trade growth is set to slow down in the coming years amid macroeconomic headwinds. It expects seaborne trade to grow at an average rate of 2.1% between 2023–2027, which is below the historical average of 3.3%.
"The recovery in maritime transport and logistics is now at risk from the war in Ukraine, the continued grip of the pandemic, lingering supply-chain constraints, and China's cooling economy and zero-COVID policy, along with inflationary pressures and the cost-of-living squeeze," the report says.
K Line’s ammonia-fuelled bulk carrier gets ClassNK nod
Japanese shipping firm Kawasaki Kisen Kaisha’s (K Line) ammonia-fuelled newcastlemax bulk carrier design has been approved by classification society Nippon Kaiji Kyokai (ClassNK).
The 200,000 dwt ammonia-fuelled newcastlemax bulk carrier has been built by Nihon Shipyard and is scheduled to be delivered by 2026.
K Line considers the approval “an important milestone for the implementation of ammonia-fueled ships”
The company collaborated with the Itochu Corporation, Nihon Shipyard, Mitsui E&S Machinery and NS United Kaiun Kaisha for the project.
Several other global shipping firms have taken an interest in ammonia and been exploring ways to consume and transport it as a clean fuel.
Among developments this month, Germany announced plans to build a green ammonia import terminal in Hamburg to process ammonia brought in from Saudi Arabia. And Japanese shipping companies Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui O.S.K. Lines (MOL) have collaborated with Tokyo-based power firm JERA to explore and develop large carriers to transport ammonia.
